DE LA RUE PLC
2021 AGM STATEMENT
Strong momentum in both Currency and Authentication divisions
Ahead of today's Annual General Meeting (AGM), De La Rue plc (“De La Rue” or “the Group”) is providing an update on its performance and progress.
Trading and outlook
The Board's expectations for 2021/22 remain unchanged and De La Rue continues to be on track to deliver the second year of the Turnaround Plan.
The cost reduction programme, amounting to £36m of cumulative cost savings versus the 2019/20 cost base, will have a full year's impact for the first time in 2021/22, including approximately £7 million incremental savings versus FY2020/21.
In Currency, De La Rue continues to experience strong demand and is building an order book in line with its expectations for growth. The mix of business is also positive. The programme to grow its polymer substrate activity, including more than doubling production capacity, is on track, and worldwide demand for the Group's SAFEGUARD® polymer is developing in line with forecasts.
In Authentication, both the Government Revenue Solutions (GRS) and the Group's Brand businesses are on track to meet expectations. De La Rue has secured a further multi-year GRS award since the full year results in May 2021, and the pipeline of contract opportunities remains robust. Implementation of existing contracts is in line with expectations, and recently won contracts will contribute to growth in H2 of the current financial year.